BAF 3M EXAM 2021-22

Last updated over 1 year ago

56 questions

True/False

1

Multiple Choice

1

Fill in the Blank

1

2

3

Transactions, Source Documents, and Adjustments

2

8

2

Library

BAF 3M EXAM 2021-22

Last updated over 1 year ago

56 questions

True/False

1

Multiple Choice

1

Fill in the Blank

WORD BANK
Not all words are used, some are used mu

ASSETS, LIABILITIES. & OWNER’S EQUITY
BALANCE
BALANCE SHEET
BANK
CAPITAL
CASH
CREDITED
CREDITS
DEBITED
DEBITS
EQUITY
FISCAL
GENERAL LEDGER
LIQUIDITY
ONE
T-ACCOUNT
TRANSACTION
TRIAL BALANCE

1

The financial statement, reporting assets, liabilities, and owner’s equity at a specific date, is called a _______ 

1

A financial event changing the value of items on the balance sheet is called a(n) _______  of the business.

1

The fact that a(n) _______  is in balance does not necessarily mean that the books are completely accurate.

1

After analyzing transactions, it is possible for several items to change, but never only _______  .

1

After analyzing each transaction, the fun dam ental accounting equation must still _______  .

1

When recording a journal entry, the accounts to be _______  are indented. 

1

A file, or group of accounts, is known as a(n) _______.

1

The difference between the total debits and total credits in an account is called the _______.

1

A listing of ledger accounts and their balances is referred to as a(n) _______ .

1

The owner’s withdrawal of cash for personal use reduces cash and _______.

1

A(n) _______ is used to record changes in assets, liabilities, and equity accounts.

1

The financial statement on which the Drawings account appears is called the _______. 

1

The period of time over which earnings are measured is called the accounting period or the _______  period.

2

A cash investment by the owner increases _______ and _______.

3

The accounting equation is based on three fundamental parts: _______ , _______  and _______ .

Transactions, Source Documents, and Adjustments

2

Complete the following table showing which account will be debited or credited for each transaction.

Received $450 cash from customers who owed the business money.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Bought a truck for $18 500. Made a down payment of $5 000 and will pay the rest later.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Made the regular $1 000 payment on the bank loan.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

The Owner invested $20 000 more in the business.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Paid $250 to a creditor.

Debit: __________
Credit: __________

2

Complete the following table showing which account will be debited or credited for each transaction.

Paid Bell Canada $27 for the monthly bill.

Debit: __________
Credit: __________

8

Capital, Revenue, Expense and Drawings are all classifications of owner’s equity accounts.

True

False

The owner bought a new truck for personal use. This event qualifies as a business transaction.

True

False

Net income or net loss is shown on the balance sheet.

True

False

A business transaction causes the financial position of the business to change.

True

False

Accounts Payable would be listed before a mortgage on a balance sheet.

True

False

A revenue account should normally have a credit balance.

True

False

The purchase of office equipment for cash affects both assets and liabilities.

True

False

A chart of accounts is the listing of all the accounts, with a number assigned to each.

True

False

The heading of a balance sheet answers three questions: Who? What? When?

True

False

Assets – Owner’s Equity = Liabilities

True

False

The term “debit” means increase, and the term “credit” means decrease.

True

False

Business debts owed to us by our customers are known as accounts payable.

True

False

All creditors have a claim against the assets of a business.

True

False

The Capital account represents the Owner’s claim on the assets of his business.

True

False

If a trial balance is in balance, the account balances are correct.

True

False

The number 410 indicates which type of account?

expense

revenue

liability

asset

A debit to HST Recoverable would mean a business

sold an item and collected HST

purchased an item and paid HST

remitted HST owing to the government

none of the above

Which of the following transactions would increase total liabilities?

Returned equipment originally bought on credit.

Borrowed money from the bank.

Paid the telephone bill received today.

Withdrew money from the business for personal use.

What does a balance sheet show?

The progress of a business over a period of time

The market value of a business

The sales of a business

The financial position of a business on a specific date

Which of the following statements about the general journal is incorrect?

it can be used as a reference to verify information in the ledger

it provides a chronological record of business trasactions

it presents the financial position of the business

it is the book of original entry

How are assets listed on the balance sheet?

doesn't matter how they are listed

alphabetical order

order of value

order of liquidity

Which of the following transactions would affect owner’s equity?

A payment of $4500 in cash was made as a partial payment on the mortgage.

The business received a cheque for $600 on an account receivable.

The business paid cash for an expense.

The business bought equipment on credit.

What happens when an item that is subject to HST is sold by a business?

The purchaser with credit HST Recoverable.

The seller includes the HST in the price of the item and credits the Revenue account.

The seller will credit HST Payable.

The seller will debit HST Payable.

Prior to Metcalfe Enterprises going out of business, the accounting equation was the following:
A ($250 000) = L ($120 000) + OE ($130 000)

When the business closed down, the assets were sold for $200 000. As a result of this transaction, how much would the owner receive as her claim against the business?

$130 000

$100 000

$200 000

$80 000

Which of the following is not a source document?

telephone bill

press release to the newspaper

bank memo

cash register tape

What is the name given to an asset that is expected to last longer than one year?

there isn't a specific name for this type of asset

long-term asset

expensive asset

current asset

Which of the following is not a current asset?

accounts receivable

bank

equipment

supplies

If the assets of a company are $10 000 and the liabilities are $7 000, then the correct figure for the Owener's Equity is:

$5 000

$17 000

$3 000

$10 000

If the owner of a business pays cash to repair the company's delivery truck:

Cash is debited and Delivery Truck is credited

Delivery Truck is debited and Cash is credited

The Captical is credited and Delivery Truck is credited

An Expense account is debited and Cash is credited

A company spents $10 000 000 for an office building. Over what period should the cost be written off (expensed with depreciation)?

Over the useful life of the building

After $10 000 000 in revenue is earned

When the $10 000 000 is expended in cash

All in the first year

WORD BANK
Not all words are used, some are used mu

ASSETS, LIABILITIES. & OWNER’S EQUITY
BALANCE
BALANCE SHEET
BANK
CAPITAL
CASH
CREDITED
CREDITS
DEBITED
DEBITS
EQUITY
FISCAL
GENERAL LEDGER
LIQUIDITY
ONE
T-ACCOUNT
TRANSACTION
TRIAL BALANCE

The financial statement, reporting assets, liabilities, and owner’s equity at a specific date, is called a _______ 

A financial event changing the value of items on the balance sheet is called a(n) _______  of the business.

The fact that a(n) _______  is in balance does not necessarily mean that the books are completely accurate.

After analyzing transactions, it is possible for several items to change, but never only _______  .

After analyzing each transaction, the fun dam ental accounting equation must still _______  .

When recording a journal entry, the accounts to be _______  are indented. 

A file, or group of accounts, is known as a(n) _______.

The difference between the total debits and total credits in an account is called the _______.

A listing of ledger accounts and their balances is referred to as a(n) _______ .

The owner’s withdrawal of cash for personal use reduces cash and _______.

A(n) _______ is used to record changes in assets, liabilities, and equity accounts.

The financial statement on which the Drawings account appears is called the _______. 

The period of time over which earnings are measured is called the accounting period or the _______  period.

A cash investment by the owner increases _______ and _______.

The accounting equation is based on three fundamental parts: _______ , _______  and _______ .

Complete the following table showing which account will be debited or credited for each transaction.

Received $450 cash from customers who owed the business money.

Debit: __________
Credit: __________

Complete the following table showing which account will be debited or credited for each transaction.

Bought a truck for $18 500. Made a down payment of $5 000 and will pay the rest later.

Debit: __________
Credit: __________

Complete the following table showing which account will be debited or credited for each transaction.

Made the regular $1 000 payment on the bank loan.

Debit: __________
Credit: __________

Complete the following table showing which account will be debited or credited for each transaction.

The Owner invested $20 000 more in the business.

Debit: __________
Credit: __________

Complete the following table showing which account will be debited or credited for each transaction.

Paid $250 to a creditor.

Debit: __________
Credit: __________

Complete the following table showing which account will be debited or credited for each transaction.

Paid Bell Canada $27 for the monthly bill.

Debit: __________
Credit: __________

Drag and Drop the correct response for the statement.

The accounting department learns of transactions from business papers called _____________________  .

A ____________________   is a business form prepared whenever goods or services are sold for cash.

A __________________   is a business form prepared whenever goods or services are sold on account.

The account debited for all sales on account is ________  .

In any sales transaction, the party that sells is known as the ___________  .

A _____________________   is a business form representing a purchase of goods on account.

The ________________________________   is the business paper that records payments coming in from customers.

A bank __________  memo, initiated by the bank, will decrease the Bank account of a business.

Other Answer Choices:

Source Documents

Cash Receipts Daily Summary

A/R

Purchase Invoice

Bank

Cash Sales Slip

Sales Invoice

Vendor

Debit

Choose the accounts that are debited and credited when the given adjustments are made. For (B), ( C), and (D), assume that accounting clerks debited asset accounts when they received the appropriate invoices.

A. Adjust for a late-arriving telephone bill. 

Debit:__________
Credit:__________

Choose the accounts that are debited and credited when the given adjustments are made. For (B), ( C), and (D), assume that accounting clerks debited asset accounts when they received the appropriate invoices.

B. Adjust for insurance used.

Debit:__________
Credit:__________

Choose the accounts that are debited and credited when the given adjustments are made. For (B), ( C), and (D), assume that accounting clerks debited asset accounts when they received the appropriate invoices.

C. Adjust for prepaid insurance.

Debit:__________
Credit:__________

Choose the accounts that are debited and credited when the given adjustments are made. For (B), ( C), and (D), assume that accounting clerks debited asset accounts when they received the appropriate invoices.

D. Adjust for supplies used.

Debit:__________
Credit:__________

Capital, Revenue, Expense and Drawings are all classifications of owner’s equity accounts.

True

False

The owner bought a new truck for personal use. This event qualifies as a business transaction.

True

False

Net income or net loss is shown on the balance sheet.

True

False

A business transaction causes the financial position of the business to change.

True

False

Accounts Payable would be listed before a mortgage on a balance sheet.

True

False

A revenue account should normally have a credit balance.

True

False

The purchase of office equipment for cash affects both assets and liabilities.

True

False

A chart of accounts is the listing of all the accounts, with a number assigned to each.

True

False

The heading of a balance sheet answers three questions: Who? What? When?

True

False

Assets – Owner’s Equity = Liabilities

True

False

The term “debit” means increase, and the term “credit” means decrease.

True

False

Business debts owed to us by our customers are known as accounts payable.

True

False

All creditors have a claim against the assets of a business.

True

False

The Capital account represents the Owner’s claim on the assets of his business.

True

False

If a trial balance is in balance, the account balances are correct.

True

False

The number 410 indicates which type of account?

expense

revenue

liability

asset

A debit to HST Recoverable would mean a business

sold an item and collected HST

purchased an item and paid HST

remitted HST owing to the government

none of the above

Which of the following transactions would increase total liabilities?

Returned equipment originally bought on credit.

Borrowed money from the bank.

Paid the telephone bill received today.

Withdrew money from the business for personal use.

What does a balance sheet show?

The progress of a business over a period of time

The market value of a business

The sales of a business

The financial position of a business on a specific date

Which of the following statements about the general journal is incorrect?

it can be used as a reference to verify information in the ledger

it provides a chronological record of business trasactions

it presents the financial position of the business

it is the book of original entry

How are assets listed on the balance sheet?

doesn't matter how they are listed

alphabetical order

order of value

order of liquidity

Which of the following transactions would affect owner’s equity?

A payment of $4500 in cash was made as a partial payment on the mortgage.

The business received a cheque for $600 on an account receivable.

The business paid cash for an expense.

The business bought equipment on credit.

What happens when an item that is subject to HST is sold by a business?

The purchaser with credit HST Recoverable.

The seller includes the HST in the price of the item and credits the Revenue account.

The seller will credit HST Payable.

The seller will debit HST Payable.

Prior to Metcalfe Enterprises going out of business, the accounting equation was the following:
A ($250 000) = L ($120 000) + OE ($130 000)

When the business closed down, the assets were sold for $200 000. As a result of this transaction, how much would the owner receive as her claim against the business?

$130 000

$100 000

$200 000

$80 000

Which of the following is not a source document?

telephone bill

press release to the newspaper

bank memo

cash register tape

What is the name given to an asset that is expected to last longer than one year?

there isn't a specific name for this type of asset

long-term asset

expensive asset

current asset

Which of the following is not a current asset?

accounts receivable

bank

equipment

supplies

If the assets of a company are $10 000 and the liabilities are $7 000, then the correct figure for the Owener's Equity is:

$5 000

$17 000

$3 000

$10 000

If the owner of a business pays cash to repair the company's delivery truck:

Cash is debited and Delivery Truck is credited

Delivery Truck is debited and Cash is credited

The Captical is credited and Delivery Truck is credited

An Expense account is debited and Cash is credited

A company spents $10 000 000 for an office building. Over what period should the cost be written off (expensed with depreciation)?

Over the useful life of the building

After $10 000 000 in revenue is earned

When the $10 000 000 is expended in cash

All in the first year

Drag and Drop the correct response for the statement.

The accounting department learns of transactions from business papers called _____________________  .

A ____________________   is a business form prepared whenever goods or services are sold for cash.

A __________________   is a business form prepared whenever goods or services are sold on account.

The account debited for all sales on account is ________  .

In any sales transaction, the party that sells is known as the ___________  .

A _____________________   is a business form representing a purchase of goods on account.

The ________________________________   is the business paper that records payments coming in from customers.

A bank __________  memo, initiated by the bank, will decrease the Bank account of a business.